Mr. Quinn’s forensic accounting skills have been used within many different areas, including civil litigation matters, corporate investigations, and probate and trust matters. He is skilled at evidence discovery and in reconstructing accounting and business records to uncover essential facts.
Webster’s defines “forensic” as “suitable for use in a court of law.” When applied in the accountancy arena, forensic accounting is the specialty practice area of accounting that describes engagements which result from real or anticipated litigation.
In today’s world of litigation, the art of forensic accounting is becoming ever more prevalent. Matters requiring forensic accounting include:
- Reconstructing records accidentally or intentionally destroyed;
- Investigating accounting records including tracing transactions to supporting source documents;
- Valuing damages; and
- Analyzing financial results and balances for completeness and reasonableness.
In addition to litigation engagements, Hugh also provides proactive forensic accounting services to identify any potential problems or control weakness, hopefully before any improper activity has taken place. While not able to provide absolute assurance that no fraud exists, these engagements help companies and organizations before a problem materializes by providing an objective outside review by accountants specializing in the field of fraud. The outside review also acts as a deterrent which strengthens the organization’s internal control environment.
Select Forensic Accounting Engagements
- Assisted counsel in the investigation of an offshore reinsurer’s revenue recognition policies to determine whether restatement was appropriate. Extensive analysis of electronic transmissions. Ultimately determined that restatement was not necessary.
- Assisted in the successful defense of the CEO of a Fortune 500 software company accused of fraudulent activity related to revenue recognition and billing improprieties. Researched relevant accounting rules and provided consulting advice to counsel in drafting a “Wells” submission to the SEC. Assisted in the preparation of various motions and discovery requests. Reviewed accounting and financial records, contract files, and other financial data, and analyzed company’s competitors, industry conditions, and the overall marketplace in preparing various reports for counsel. Also assisted counsel with interviews of the company’s personnel.
- Counsels corporate clients regarding internal financial and compliance investigations especially those involving complex accounting issues.
- Assisted counsel in the defense of a broker-dealer subsidiary of a large investment brokerage firm to allegations of insider trading by the SEC concerning the company’s trading in a company account and the offering of a private investment in public equity (“PIPE”). Reviewed trading detail, financial records, and electronic transmissions in assisting counsel to reach settlement.
- Assisted counsel in the defense of the investment banking division of a Fortune 100 Bank accused of breaching their fiduciary duties by improperly sweeping cash balances from the clients’ accounts and investing these funds to the benefit of the bank. Mr. Quinn reviewed financial records to determine the potential liability associated with the suit. Matter is on-going.
- Retained as an expert by the issuer of a Directors’ and Officers’ policy and issued report. Matter involved the determination of the appropriate legal fees incurred by various parties engaged in several distinct transactions over a period of time. Assisted counsel in refuting opposition’s expert’s report and in deposition of opposition’s expert. Favorable settlement occurred.
- Assisted counsel in defending construction contractor in a breach of contract claim. Developed model projected lost profits associated with counterclaim of contractor. Analyzed issues including lost or diminished revenue, diminution of future revenue prospects, increased costs, avoided costs, cost of capital, and mitigation.
- Assisted a government contractor involved in a dispute with the government concerning application and calculation of overhead rates. Mr. Quinn reviewed relevant FAR guidance and assisted in the negotiations with the government to find resolution.
- Created model to reflect limits of liability associated with alleged breach of contract claim against a government contractor.
- Assisted counsel in an engagement involving a large professional services firm and its legacy government consulting services business, with particular focus on the preparation of incurred cost submissions. Mr. Quinn analyzed client contracts and reviewed accounting system data to assess whether over/under-billings to the government had occurred.